G7 leaders issue guidelines to be followed by CBDC issuers

G7 leaders have gathered once again to tackle the confusion regarding CBDCs or Central Bank Digital Currencies.
G7 leaders have gathered once again to tackle the confusion regarding CBDCs or Central Bank Digital Currencies.

G7 leaders have gathered once again to tackle the confusion regarding CBDCs or Central Bank Digital Currencies. On 13th October, the leaders from 7 different nations that are economically advanced started discussing these blockchain-based currencies. 

It was noted that these currencies should “do no harm” and compliment the currency of the nation it is issued in. Basically, the G7 leaders specified the guidelines in their meeting that CBDC issuers should note before they start issuing these blockchain-based digital currencies. 

The G7 leaders gathered in Washington to discuss CBDCs, and after the discussion, there were thirteen principles that were agreed upon. The first and most important condition included was that these currencies should “do no harm” the ability of the central banks to maintain financial stability. 

G7 leaders issued a joint statement

The finance ministers and central bank officials from the 7 nations, i.e., Canada, France, Germany, Italy, Japan, the U.K., and the U.S., offered their joint statement. In their joint statement, the G7 leaders stated

“Strong international coordination and cooperation on these issues help to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.”

Furthermore, the G7 leaders emphasized that CBDCs must be anchored to the current monetary system regulated by financial authorities. Hence, CBDCs will remain a liquid asset that must be energy efficient while being able to facilitate easy payments across every nation. 

None of the 7 nations made an announcement regarding CBDCs

None of the G7 leaders announced their plans on releasing CBDCs. While the U.K. is currently doing research on the same, the U.S. is also not far behind.

Furthermore, as mentioned by the G20, any plans of initiating a global stablecoin project will not be complete without the OK of financial authorities and the fulfillment of all the necessary legal requirements.

Many people have been actively criticizing CBDCs. Recently, whistleblower Edward Snowden called CBDCs a ‘perverted’ form of cryptocurrencies.